[UPDATE 2] Rdio has launched a free music streaming in the U.S., Canada and Australia today. Called Stations, the free streams will be based on the user's favorite genres, artists, songs and albums. The ad free streams will be available on iOS and Android. A web version will include ads sold by new Rdio partner Cumulus Media.

The Echo Nest is powering the personanilzation of Rdio's Stations. They're also working
with Rdio to ensure that all the new free stations are
DMCA-compliant, allowing the music streamer to pay the same royalty rates as pure-play webcasters.

Details plus full text of the official announcement:

The free service, first reported by the Associated Press, is designed to keep Rdio competitive with Spotify, Pandora, Rhapsody, iTunes Radio and others. The music streamer also hopes that users will upgrade to a $10 per month subscription.

"We don’t need you to subscribe right away," says Chris Becherer, VP For Product told The Verge. "You can live inside Stations for a long time. We think that over time, you’ll start building up your collection, building up your favorites. And whenever you do subscribe, all that stuff is ready to go."

Here is the full text of the official announcement:

One of Rdio’s most
popular features is now free forever on IOS and Android

Now anyone can
stream hundreds of personalized stations that draw from over 20 million tracks

SAN FRANCISCO – October 3, 2013 – Rdio, the groundbreaking digital music service
that has reinvented the way people discover, play, and share music, today
announced that its new, highly personalized streaming stations are now free on
mobile to all iOS and Android users.

Starting today, stations are free for all users — even those
whose subscriptions or trials have ended. Any user is now invited to listen to
all of Rdio’s stations — drawing from over 20 million songs — at no cost
through the Rdio mobile app, available in the Apple App Store
and Google
Play.

Launched in August, Rdio’s new and improved stations are a
culmination of Rdio’s focus on beautiful design and usability. Stations are
also smarter and custom-tailored to users, creating an effortless listening
experience that highlights the best of Rdio. Everyone can now listen to all of
the artist, song, and 400 genre stations available on Rdio as well as You FM
and Friend FM — personalized stations inspired by an Rdio user’s taste in music
and likes on Facebook. Since launching in August, nearly 2.3 million stations
have been created.

In addition, Rdio also announced two new features for
stations:

Station sharing. Think your You FM is proof positive
of your superior music taste? Now you can share it — and any song, artist,
genre, or other type of station — on Facebook, Twitter, or with any friend
on Rdio.

Playlist
and album stations.
Creating an endless stream of your favorite (or soon to be favorite) songs
keeps getting easier. With the introduction of playlist stations and album
stations, Rdio has more station types than any other music service in the
market.

"Station plays are up over 50 percent since our launch
in August,” said Drew Larner,
Rdio’s chief executive officer. “We're excited to make one of our most
popular features available to everyone for free, forever."

Non-stop listening for free on Rdio’s stations is available
on Rdio for iOS and Android in the United States, Canada, and Australia. Visit
the Apple App
Store and Google
Play to download the Rdio app today.

About Rdio

Rdio is the groundbreaking digital music service that is
reinventing the way people discover, play, and share music. Play what you want,
when you want, or turn on a station for a perfect mix of songs. Listen anywhere
— the web, your phone, even offline — and follow friends and artists to see
what they’re playing.

Launched in August 2010, Rdio is headquartered in San
Francisco and was founded by Janus Friis, the co-creator of Skype, and is
currently available in 31 countries. For more information and to sign up, visit
www.rdio.com.

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[UPDATE 2] Rdio has launched a free music streaming in the U.S., Canada and Australia today. Called Stations, the free streams will be based on the user's favorite genres, artists, songs and albums. The ad free streams will be available on iOS and Android. A web version will include ads sold by new Rdio partner Cumulus Media.

The Echo Nest is powering the personanilzation of Rdio's Stations. They're also working
with Rdio to ensure that all the new free stations are
DMCA-compliant, allowing the music streamer to pay the same royalty rates as pure-play webcasters.